Statement on Signing the Fraud Enforcement and Recovery Act of 2009
Issued 2009-05-20 by Barack Obama
Plain-English Overview
AI-generated summary explaining what this action does, who it affects, and why it matters
President Obama signed the Fraud Enforcement and Recovery Act of 2009, which gives federal investigators and prosecutors new tools to prosecute financial fraud. The law is designed to help the Department of Justice combat mortgage fraud, securities and commodities fraud, and related crimes. It also aims to protect taxpayer money that was spent on economic stimulus and rescue packages during the financial crisis.
The Act provides new criminal and civil enforcement mechanisms that allow law enforcement to better hold people accountable for financial fraud. According to the President's statement, these tools will help the Justice Department and other agencies address economic challenges facing the nation during difficult times.
While signing the law, President Obama noted one concern about a provision requiring all federal agencies to provide information to the Financial Crisis Inquiry Commission, a congressional entity. The administration stated it would interpret this requirement as not eliminating any constitutional privileges the executive branch holds. The constitutional basis for this interpretive approach has been debated, with some legal experts questioning whether such signing statements are appropriate.
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Constitutional Analysis
How this action fits (or doesn't) within Article II authority and existing law
This signing statement ("Statement on Signing the Fraud Enforcement and Recovery Act of 2009") was issued alongside a bill the President signed into law. The President's stated concerns: "mortgage fraud, securities and commodities fraud, and related offenses, and to protect taxpayer money that has been expended on recent economic stimulus and rescue packages." Signing statements allow presidents to express constitutional or policy objections to specific provisions of legislation they have just signed. Their legal weight and constitutional propriety have been contested since the practice became common in the 1980s.
Critics — including the American Bar Association — argue that using signing statements to announce an intent to not enforce portions of a law effectively creates a line-item veto, which the Supreme Court ruled unconstitutional in Clinton v. City of New York (1998). Defenders argue presidents have a duty to identify constitutional concerns and that signing statements are a legitimate form of executive interpretation. The constitutional propriety depends on whether this specific statement announces non-enforcement or merely records the President's views.
Official Summary
Administration of Barack H. Obama, 2009 Statement on Signing the Fraud Enforcement and Recovery Act of 2009 May 20, 2009 Today I have signed into law S. 386, the "Fraud Enforcement and Recovery Act of 2009." This Act provides Federal investigators and prosecutors with significant new criminal and civil tools to assist in holding accountable those who have committed financial fraud. These legislative enhancements will help the Department of Justice to combat mortgage fraud, securities and commodities fraud, and related offenses, and to protect taxpayer money that has been expended on recent economic stimulus and rescue packages. With the tools that the Act provides, the Department of Justice and others will be better equipped to address the challenges that face the Nation in difficult economic times and to do their part to help the Nation respond to this challenge. Section 5(d) of the Act requires every department, agency, bureau, board, commission, office, independent establishment, or instrumentality of the United States to furnish to the Financial Crisis Inquiry Commission, a legislative entity, any information related to any Commission inquiry. As my Administration communicated to the Congress du